Second-time househunters looking to make the move to a larger home are finding it increasingly difficult to secure a suitable property, according to estate agents.

Second-time househunters looking to make the move to a larger home are finding it increasingly difficult to secure a suitable property, according to estate agents.

The National Association of Estate Agents (NAEA) found properties for sale in its members’ branches decreased slightly in August, from 61 to 60, and this is only part of the challenge for those looking to upgrade to a larger property.

While the problems affecting first-time buyers are well documented, estate agents across Wales are now saying existing homeowners are struggling to find deposits to a make the step into larger family homes.

A recent Lloyds TSB report found that so-called “second-steppers” now have just over £9,000 in equity on average, meaning the struggle to raise a sufficient deposit is no longer the preserve of those getting their foot on the first rung of the housing ladder.

Mark Hayward, President of the NAEA, said: “Many would-be ‘second-steppers’ are finding they are still hamstrung by high deposits and prohibitive lending conditions.

“Across the board, house prices are fairly flat, and this means that many owner-occupiers are unable to withdraw additional equity from their property when they decide to move.”

Estate agent Michael Jones, of Michael Jones & Co in Cardiff, said that it was the stamp duty threshold that proved to be the biggest deterrent for second time buyers.

“Invariably second time buyers are looking at homes priced in the region of £200,000 to £250,000 but that step from 1% to 3% stamp duty at £250,000 can be a real issue and real blocker,” he said.

“It is a fairly sizeable extra amount of tax payable and that does deter people. We are finding that those trying to sell, even at £270,000, are having buyers trying to bring prices down to £249, 950 to avoid that tax.”

The NAEA said those looking to move into their second property should be aware of house price “micro-markets”.

“Although there are broad national housing market trends, there is always a lot of local variation, which can help you find a bargain,” said a spokesman.

He said maximising the sale value of your first home was essential.

“At a cosmetic level, applying a fresh coat of paint to rooms and lounge space can really help to spruce up the property. Clearing the approach can also give a better initial impression and boost ‘kerb appeal’.”

Delyth Davies, from Clee Tomkinson Francis, Carmarthen, said those looking to move into their second property should set a realistic price, based on current market conditions.

“This gives your home the best chance of being sold within a reasonable time frame,” she said.

“Once a figure is agreed with your agent, this price will give you an idea of what you will have to spend on your next property. If you haven’t been in the property market for some time, be sure to talk to your bank to find out how much you can borrow to further guide your property search.

In North Wales, estate agent Colin Brereton at Jones Peckover’s Wrexham office said second-steppers were struggling to find large deposits.

“Unfortunately finding the equity to make the step up to a property above £200,000 has become increasingly difficult as mortgage lenders have made more difficult.”

He also highlighted the issue of stamp duty with properties.

“Essentially buying a property of £250,00 will equate to at least another £7,500, which will not be part of any loan.

“Across the board, house prices are fairly flat, and there have been fewer of these kinds of properties coming onto the market over the last year or so, although the last month has seen an improvement. There is always a bit of surge in interest after the school holidays but as we head into winter things do tend to get quieter.”

Next: Suggested second-stepper properties on the Welsh market

We asked estate agents to come up with suggestions for ideal properties for "second steppers" across Wales. Here's what they came up with:

:: Troed Y Allt, Carmarthen £115,000

What the agent says:

“Ideal 3 bed step up property in Carmarthenshire. Small development outside the town. Low maintenance, ideal for growing families. Well priced at £115,000.

Situated on a select residential development, 7 miles north of Carmarthen, Troed Y Allt offers 8 modern and stylish homes ranging in 2/3 bedrooms. Benfiting from LPG central heating and double glazing, the accommodation comprises in brief, entrance hall, kitchen, cloakroom, lounge, 3 bedrooms and bathroom. Externally there are gardens to the front and rear, with allocated parking and pleasant rural view.”

:: St Agnes Road, Heath, Cardiff £229,950

What the agent says:

An attractive bay-fronted house in this sought-after residential area within

“This is in a semi rural area, but within a good second step price range. Modern Detached 3 Bed. Family house at head of cul de sac. Entrance hall, 2 Reception Rooms, completely refitted Kitchen, En Suite Shower Room and family Bathroom. Detached Garage. uPVC double glazed windows and Gas central heating.

:: Oakview, Bowling Bank, Isycoed £189,950

What the agent says:

"A modern 3 Bedroom Detached House in rural location backing on to open fields. Entrance Hall, Cloakroom/WC. Lounge, Dining Room, Kitchen, well appointed family Bathroom. LPG central heating. Attached single garage. Gardens to front and rear."

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